US Housing Market
10:03 am
Tue February 7, 2012

Kentucky Not Currently Part of Settlement over Foreclosures

More than 40 U.S. states have agreed to a nationwide settlement over foreclosure abuses. The deal would force the five largest mortgage lenders to reduce loans for about 1 million households.

Kentucky Attorney General Jack Conway questions the settlement, saying he still has concerns about how mortgage loans are recorded and mortgage-backed securities.

“Kentucky stands to benefit from this, benefit significantly", said Conway. "I don’t want to downplay that. I’m trying to make certain that the best interests of Kentucky mortgage holders who interfaced with these five banks are protected. And I want to make sure that this is step one in a continued process to stand up for Kentucky homeowners, to stand up for those who are still dealing with Fannie Mae and Freddie Mac.”

Conway, along with the attorneys general from California, New York, and other states, say the settlement should not release the banks from possible litigation in the future.

Under the settlement, Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial would send checks for about $2,000 to hundreds of thousands of people who lost homes to foreclosure.